Crypto recovery at $68K levels on reading, stocks remain cold amid geopolitical tensions

Digital asset markets have shown significant recovery this week, rising from weekend lows as U.S. stock markets adopt a more cautious approach following recent noise from the Middle East conflict. Market sentiment is shifting as traders analyze new economic data and geopolitical developments affecting investment strategies.

Bitcoin and altcoins rise to higher levels

Bitcoin reached $71,480 during this trading session, with a solid 3.67% gain in the past 24 hours after weekend weakness. It surpassed the initial resistance level, indicating renewed momentum in the cryptocurrency market. Ethereum is even healthier, with a 4.79% uptick, while Solana and XRP follow with 5.25% and 4.57% gains respectively, reflecting a broader altcoin rally.

This recovery mirrors improving market sentiment as technical indicators show bullish repositioning within the crypto ecosystem.

Cryptocurrency-related stocks lead broader market gains

Equity markets showed low enthusiasm, with Nasdaq down just 0.1% and the S&P 500 and Dow Jones Industrial Average posting minimal declines. However, companies with direct exposure to the crypto sector outperformed significantly. Circle Inc. led the gains with a 12% jump, while MicroStrategy rose 6% and Galaxy Digital gained 4.7%, demonstrating investor confidence in blockchain-linked businesses despite the broader market’s caution.

Manufacturing data moves in a positive direction

The ISM Manufacturing PMI reached 52.4, confirming ongoing sector expansion and continuing the trend from the second quarter of 2022. The Chicago Business Barometer was even more upbeat, rising to 57.7 in February 2026 from 54, well above the consensus expectation of 52.8. This level of economic health suggests a second consecutive expansion cycle since November 2023, marking the strongest manufacturing activity momentum since May 2022.

Geopolitical tensions and monetary policy expectations reshape outlook

The combination of Middle East conflict dynamics, higher oil prices due to geopolitical risks, and in-line higher-than-expected inflation readings are changing expectations for the Federal Reserve’s March 18 meeting. Market sentiment now indicates that a rate cut in March is less likely, altering the calculus for crypto and equity investors who had anticipated monetary easing. The stronger manufacturing backbone, along with persistent inflation pressures, gives the Fed flexibility to hold and monitor developments before making policy adjustments.